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Towards Creation of the Afro-European Century: What needs to be done

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By

Dr. Kaze Armel, Lecturer, Xiangtan University, School of Law, China-Africa Research Institute

Dr. Ogwu Ikechukwu, Lecturer, International  Education School, Hunan Institute of Engineering, Xiangtan.

Introduction

The idea of an “Afro-European Century” envisions a transformative era where Africa and Europe leverage their partnership to achieve shared prosperity, global influence, and sustainable development; thereby reshaping their roles in the global order. The European Union (EU) -Africa partnership, built on decades of cooperation through summits, trade agreements, and investment initiatives, has the potential to realize this vision by harnessing complementarities in economic, social, political, and environmental domains. Certainly, the EU-Africa development partnership is one of the most critical international relationships, shaping not only the futures of the two continents but also having profound global implications. Its criticality stems from a complex interplay of history, geography, shared challenges, and mutual opportunity. The history of European colonialism in Africa, for instance, created deep economic, linguistic, and political linkages, but also a legacy of exploitation and imbalance. This history imposes a moral and ethical responsibility on Europe to support equitable development and address historical injustices in Africa, creating a new era defined by mutual dependence, demographic complementarities, and a complex web of economic, political, and cultural interdependencies. The realization of this future, however, is not guaranteed. It requires a fundamental re-evaluation of current partnership models, a confrontation with lingering neocolonial mindsets, and a commitment to people-centered policies. By leveraging Africa’s demographic dividend to address Europe’s aging workforce and by fostering a truly equal partnership based on win-win development agendas, both continents can unlock unprecedented shared prosperity. Africa is home to a plethora of natural resources and fast growing market that presents opportunities for the EU’s growth and development, leveraging its expansive industrial capacity. Similarly, both Africa and EU faces similar challenges such as climate change, immigration, and security, making cooperation a more pragmatic approach to the partnership than competition or isolationism.

Recent history of EU-Africa economic and Trade partnership

The historical relationship between Africa and Europe has been profoundly shaped by a dominant worldview known as Eurocentrism. This perspective, dates back to the Renaissance and flourished in the 19th century, frames Europe as the center of global events, the primary player and architect of world history, the bearer of universal values and reason, downplaying or ignoring the historical contributions of non-Western cultures. For centuries, this intellectual framework provided a “justifying rationale” for the hierarchical subjugation of Africa and Asia, cementing a sense of assertiveness about European culture that advanced with its military, trade, and religious forces. In response to this, Afrocentrism emerged as a critical scholarly and cultural movement. It presents a worldview that centers on the history of people of African descent and seeks to conduct research from the perspective of historical African peoples and polities. The aim is to counter what are seen as mistakes and myths perpetuated by Eurocentric academic disciplines.

The emergence of Afrocentrism is more than a mere academic or cultural counter-current; it is a direct and logical consequence of the centuries-long “solid European domination of intellectual concepts and philosophical ideas”. The existence of a movement dedicated to inverting the established historical hierarchy reflects a necessary, albeit complex, stage in dismantling a unipolar worldview. The criticism, articulated by scholars like Kwame Anthony Appiah, that Afrocentrism risks replacing Eurocentrism with an “equally ethnocentric and hierarchical curriculum”  highlights the difficulty of transcending a hierarchical model even when attempting to dismantle it. This suggests that achieving a truly “Afro-Euro Century” requires not just a shift in power but a fundamental change in the way knowledge and history are conceptualized and shared—a move from a zero-sum, hierarchical view to a collaborative, multi-centric one where diverse narratives can coexist without competing for a single position of dominance.

Indeed, the EU-Africa development partnership, long defined by a donor-recipient dynamic and rooted in colonial history, has undergone significant evolution in recent years. The emerging trends reflect a strategic pivot towards a partnership framed in terms of mutual interest, geopolitical necessity, and competition. The shift is driven by a confluence of shifting geopolitical dynamics, economic priorities, and global challenges such as climate change, migration, and digital transformation.

Key drivers

The evolution of the EU-Africa partnership is not spontaneous; it is a calculated response to several powerful drivers. The most fundamental structural driver of the coming century is the stark demographic divergence between Africa and Europe. While Europe’s population is aging and shrinking, Africa’s is experiencing an unprecedented boom and youth bulge. The United Nations projects that Africa’s population will reach close to 2.5 billion by 2050, comprising more than 25% of the world’s total, and could reach nearly 40% by the end of the century. This growth is so significant that five of the eight countries expected to account for more than half of the global population increase over the next three decades are in Africa. In contrast, Europe’s population growth has been the slowest of any continent, projected to shrink by 4% between 2000 and 2050. This divergence has created a profound age imbalance: the average African is just under 20 years old, while the average European is over 42. This demographic complementarity—where Europe’s crisis and Africa’s opportunity converge—creates a long-term pressure for policy frameworks to facilitate mutually beneficial migration. A failure to manage this dynamic properly would result in a “lose-lose” scenario: a demographic liability for Africa and an economic slowdown for Europe. The 2015 migration crisis seared the issue of irregular migration into the European political consciousness. EU member states, driven by domestic political pressure, have made managing migration flows a central objective of African policy. This has led to a securitisation of the partnership, where development aid is increasingly leveraged to secure cooperation on border control, readmission agreements, and stemming transit routes. Similarly, the proliferation of jihadist insurgencies across the Sahel and elsewhere directly threatens European security, making stability and counter-terrorism cooperation a non-negotiable priority.

Another push factor in the desire for stronger EU-Africa development partnership is geopolitical rivalry and the scramble for influence. The assertive presence of alternative global powers in Africa, notably China, Russia, Turkey, and the Gulf states has pushed the EU to reconsider its relations with Africa. China’s Belt and Road Initiative (BRI), offering massive infrastructure loans with “no-strings-attached,” has challenged the EU’s normative, conditionality-based model, while Russia’s expansion of security partnerships is quickly reshaping political allegiances in the continent, away from European metropoles.

The third driver revolves around economic necessity. Africa’s economic potential is undeniable. Its vast, youthful population represents both a future market and a potential labour force. More critically, the continent holds over 30% of the world’s mineral resources, including those essential for the digital and green revolutions (cobalt, lithium, platinum, and rare earth elements). For the EU to achieve its strategic autonomy and its ambitious European Green Deal, it requires secure, sustainable access to these critical raw materials. This economic imperative demands a deeper, more investment-focused partnership that moves beyond traditional aid.

Finally, the African agency and the demand for equality has jolted the EU into action. A crucial internal driver is the increased assertiveness of African leaders and institutions. Spearheaded by the African Union (AU) and embodied in modern initiatives like the Africa’s Continental Free Trade Area (AfCFTA), a historic effort to create a single liberalized market to boost intra-African trade and industrialization. The AfCFTA’s vision is to reverse Africa’s historical over-reliance on the export of unprocessed primary commodities, typifying the growing and unified demand for a partnership of equals. African leaders explicitly reject paternalism and are skilfully using the geopolitical competition to their advantage, negotiating better terms and insisting that partnerships align with their own priorities, as outlined in key frameworks like the Africa Agenda 2063. The EU can no longer dictate terms. It must negotiate them.

Outcomes of the EU-Africa development partnership

Trade facilitation.

The EU-Africa economic and trade partnership is a cornerstone of bilateral cooperation, leveraging complementary strengths to foster sustainable development, economic growth, and mutual prosperity. The partnership, rooted in agreements like the Cotonou Agreement and its successor, the EU-OACPS Partnership Agreement, as well as initiatives from the EU-Africa Summits, is critical for Africa due to its role in addressing the continent’s economic challenges, enhancing trade, and supporting Agenda 2063 goals. Key Economic Partnership Agreements (EPAs) have been signed between the EU and African countries. The EU-Southern African Development Community (SADC) EPA, implemented in 2016, grants countries like South Africa, Botswana, and Namibia duty-free access to the EU for 98.7% of their exports. South Africa’s citrus exports to the EU, valued at €1.2 billion annually, have grown significantly due to this agreement. EPAs enhance Africa’s export competitiveness, diversify economies away from raw commodities, and boost foreign exchange earnings. For instance, Namibia’s beef exports to the EU increased by 20% between 2016 and 2022, supporting rural livelihoods while earning money to the national exchequer.

Support for the African Continental Free Trade Area (AfCFTA).

The EU provides technical and financial assistance to AfCFTA, launched in 2019, to create a single market for 1.3 billion people, potentially worth $3 trillion. This includes capacity-building for trade negotiations and customs systems. The EU’s €74 million program (2020) supports AfCFTA’s implementation, training African negotiators and harmonizing trade standards. Another €300 million partnership with Niger, sealed in 2022 aligns with AfCFTA by boosting local economies. These initiatives are important to the continent as AfCFTA could increase intra-African trade from 17% (2022) to 30% by 2030, reducing reliance on external markets. Additionally, the EU support also fosters economic diversification and industrialization, critical for job creation. Africa needs 15 million jobs annually yet the continent can only generate about 3 million jobs annually, at the moment.

Infrastructure development.

Africa faces an infrastructure financing gap of $68–108 billion annually, according to the African Development Bank. Investments in digital, energy, and transport infrastructure are critical for economic growth. The Global Gateway initiative, the European Union’s investment strategy to mobilize up to €300 billion in sustainable and high-quality infrastructure projects worldwide between 2021 and 2027, exemplifies this shift. This represents a positive shift from pure aid to investment-led cooperation, potentially addressing Africa’s immense infrastructure financing gap, with €150 billion earmarked for Africa, in infrastructure, digital, climate, and health projects. The initiative, launched as part of the 2022 EU-AU Summit, has so far mobilized significant investments, with 138 flagship projects adopted between 2023 and 2025 in sectors like transport and digital connectivity. These projects aim to enhance trade efficiency and regional integration, as seen in the development of 11 strategic transport corridors across Africa. The EU’s focus on private-sector engagement, through mechanisms like the European Fund for Sustainable Development Plus (EFSD+), aims to de-risk investments and attract private capital to Africa, where only 3% of global Foreign Direct Investment (FDI) flows.

A focus on green transition.

Africa’s abundant renewable energy resources such as solar, wind and youthful workforce position it as a hub for green and digital innovation. The continent’s partnership is now central to the EU’s green strategy. The 2022 EU-AU Summit highlighted a “Green Alliance,” and the EU is aggressively pursuing Critical Raw Materials Partnerships with individual African nations to secure access to essential minerals. This offers a potential win-win as Africa could gain investment in mining and processing infrastructure, moving up the value chain and creating jobs. The EU on the other hand would gain diversified supply chains. The EU’s European Green Deal and its alignment with Africa’s development priorities emphasizes green growth, sustainable energy, and climate resilience, with initiatives like the Africa-EU Energy Partnership (AEEP), promoting universal access to affordable and sustainable energy. The EU’s push for green hydrogen and renewable energy projects, such as the scaling up renewables in Africa campaign, reflects a commitment to combat climate change while addressing Africa’s energy access gap.

Youth and civil society engagement.

The EU-Africa partnership increasingly recognizes the role of youth and civil society as drivers of change. Events like the Africa-Europe Week in 2022 and the Youth in Action “Finance the Future” Forum in 2024 highlight efforts to include young people in shaping the partnership. The AU-EU Youth Cooperation Hub and the Africa-EU Civil Society Forum provide platforms for dialogue, producing actionable recommendations on issues like sustainable finance and governance. These initiatives respond to Africa’s youthful demographic (its median age is 14 years younger than Europe’s) and aim to empower youth to address global challenges.  However, recommendations from these forums often lack binding commitments, and the AU’s relatively passive role in agenda-setting suggests an imbalance in decision-making power. This raises questions about whether these engagements are symbolic or genuinely transformative.

Strengthened political dialogue.

The evolving partnership between the two sides has fostered regular high-level engagements, such as the EU-AU Ministerial Meetings and the upcoming 2025 EU-AU Summit. These platforms have deepened political dialogue, however the AU’s limited agenda-setting power suggests an unequal partnership.

Digital transformation.

This is another growing focus area, with investments in projects like the Blue Raman submarine cable to enhance connectivity between Europe, Africa, and India. These efforts aim to bridge Africa’s digital divide and foster innovation. However, African stakeholders have expressed concerns that these initiatives may prioritize European strategic interests, such as energy security, over local industrial capabilities.

Criticisms of the Africa-EU Development partnership

Despite a rhetorical emphasis on a “strategic” and “equal partnership,” cooperation between the two unions is widely critiqued for being limited and lacking strategic direction. The relationship is still primarily defined by EU financial support for AU activities. From the perspective of some African leaders, there are lingering concerns about the EU’s “neocolonial” attitude. Although European leaders have engaged an overdrive gear in efforts to generate positive frameworks of relations with Africa, nearly every pillar of the engagement has received much criticism. The relationship often features a pattern of one-way agenda-setting, where the EU projects its own internal priorities—such as the green and digital transitions—onto its external relations with Africa, side-lining issues that are more important to African partners, such as agriculture and the informal sector.

The biggest challenge in fostering a more sustainable relation between Africa and Europe revolves round historical facts around colonialism and entrenched systems of control in modern times. African countries are deeply cautious about the intentions of the EU, a fact that is drowning out the true voices of progress on both sides.

The recent push-back against France in Africa, marked by military withdrawals, anti-French protests, and a shift toward new global partners, for example, has significantly diminished Paris’ influence on the continent. The end of Françafrique reflects a broader African demand for sovereignty and a rejection of neo-colonial dynamics. While France attempts to adapt through new strategies, its role as a dominant power in Africa is unlikely to recover, with long-term consequences for its geopolitical and economic interests.

The efficacy of foreign aid has also been fiercely debated, with critics arguing that it has failed to deliver sustainable economic growth and poverty reduction. This is a central contention of Zambian economist Dambisa Moyo’s book, Dead Aid, which argues that traditional aid is a “cancerous disease” that fosters corruption and dependency rather than promoting sustainable growth. Moyo points to the fact that while Europe has poured over $1 trillion in development assistance into Africa in the last 50 years, Africa has seen little human growth or economic development, while Asian countries that received little aid are now more prosperous. The argument is that this particular form of aid creates “moral hazards,” making it easy for corrupted leaders to divert funds, undermining local economic activities and civic initiatives.

On specific EU partnership proposal with Africa, disquiet has also been expressed. The emphasis on green and digital transitions, is for instance seen to be more aligned closely with EU priorities, such as securing critical raw materials (CRMs) for its green economy, than with Africa’s immediate needs, like skills development or technology transfer. The power imbalance posits a danger of creating a new “green colonialism,” where Africa remains a supplier of raw materials rather than developing its own green manufacturing capacities. The outcomes will depend on whether these deals include genuine technology transfer and support for African-owned value addition.

The push by EU to invest in Africa through initiatives like Global Gateway Initiative appears to be heavily inclined to favour resource-rich regions rather than least developed countries. The Initiative, is critically viewed as a reactive, geostrategic tool to counter China rather than a genuinely altruistic development plan. In fact, much of the West did not pay attention to Africa, at least in an economic and strategic sense, until after the Beijing summit in November 4, 2006, at the Forum on China-Africa Cooperation (FOCAC) with the theme “Friendship, Peace, Cooperation and Development” which featured over 5000 people, from heads of government or government representatives from 48 African countries and 24 international and regional organizations, including the United Nations and the African Union.

The risk is that the EU’s projects and interventions are chosen for their geopolitical value such as creating alternative supply chains, rather than their local developmental impact. Furthermore, the slow rollout of concrete projects, compared to China’s rapid delivery, also raises questions about its effectiveness.

Conclusion

The EU-Africa partnership has made strides toward a more strategic, investment-driven relationship, but it also remains constrained by historical imbalances and competing priorities. The EU’s emphasis on green and digital transitions aligns with global trends but risks prioritizing its own interests over Africa’s developmental needs. The focus on extractive industries and migration control perpetuates a donor-recipient dynamic, undermining the narrative of equality.

Africa’s growing agency, through frameworks like AfCFTA and the AU’s global advocacy, offers an opportunity to rebalance the partnership. The EU  should support it as a single, powerful trading bloc. This would empower Africa to leverage its combined population and resources on the global stage and foster the industrialization and value-added production necessary for long-term growth. The EU must move beyond symbolic gestures, such as youth forums, to empower African stakeholders in decision-making. The lack of focus on industrialization and technology transfer remains a critical gap, limiting the partnership’s transformative potential.

Essentially, the EU-Africa development partnership is at a crossroads, shaped by trends toward investment, green and digital transitions, and youth engagement. While initiatives like Global Gateway signal progress, outcomes are tempered by unequal power dynamics and misaligned priorities. For the partnership to achieve its goal of mutual benefit, the EU must prioritize Africa’s industrialization, enhance local ownership, and address structural grievances. Only then can it evolve into a truly equitable collaboration that delivers sustainable prosperity for both continents.

Under-$0.005 Coin That Could Recreate and Surpass What Cardano Did in 2021 Attracts Early ADA Believers

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Cardano’s run in 2021 turned regular investors into six-figure winners, so it’s no surprise that early ADA believers are now scanning the market for the next low-priced rocket. And lately, a lot of that attention has shifted toward Little Pepe (LILPEPE), a sub-$0.005 token building momentum in a way that feels familiar to anyone who watched ADA climb from pennies to a major altcoin. LILPEPE isn’t trying to be a smart-contract platform or compete with Cardano’s tech stack. What it is doing, though, is capturing that same early-cycle enthusiasm. The mix of low entry price, strong community traction, and rapid presale growth has ADA veterans paying attention again.

Why ADA Investors Are Watching LILPEPE

Traders who rode Cardano’s 2021 surge know the pattern well. A quiet accumulation phase. Strong community expansion. And a narrative that grows faster than the chart can keep up with. LILPEPE is showing a similar rhythm. Its presale continues to build demand at a pace most microcaps don’t see. Social traction keeps climbing. Early investors appreciate that, at under $0.005, LILPEPE offers them the same “buy early, hold big” opportunity they enjoyed with ADA before it became a top-ten asset. The token also comes Certik-audited, which is rare for early-stage meme coins. That stamp of credibility makes the project more approachable for cautious investors seeking speculative upside without taking on a complete gamble.

What’s Fueling the Hype Behind LILPEPE

Strong Community + Anti-Bot Protection

One reason early ADA investors are shifting toward LILPEPE is the cleaner launch environment. Anti-bot protections and a zero-gas-fee setup make the ecosystem easier for retail users to engage with. This matters more than people think, especially during the early frenzy of a presale.

Huge Giveaway Events Attracting Attention

The project has become even more visible thanks to a $777,000 giveaway and a separate 15 ETH mega event. These rewards aren’t small. They’ve already attracted thousands of new users to the community and driven growth across social media.

The Low Price Window

The biggest appeal is simple. LILPEPE is affordable. For under $0.005, investors are given the psychological freedom to stack large amounts of tokens, a feature that ADA’s earliest holders could relate to before its 2021 explosion. When a project reaches the right level of hype, growth can be dramatic.

Can LILPEPE Surpass ADA’s 2021 Rise?

It’s always hard to compare meme coins to utility chains like Cardano. They operate in different lanes. But in terms of percentage gains, meme tokens often outperform traditional altcoins when sentiment is hot. PEPE did it. SHIB did it. DOGE did it. And early analysts think LILPEPE could follow the same playbook. The presale numbers already hint at strong early conviction. Add in the viral meme identity, audited contract, huge giveaway activity, and surprisingly organized community, and you’ve got a project forming at the perfect moment in the cycle. If retail momentum hits the way it did for ADA back in 2021, LILPEPE could climb far beyond the microcap stage.

Final Thoughts: A Tiny Coin With Big-Cycle Appeal

Little Pepe (LILPEPE) is one of those early-cycle tokens that has just enough structure to keep investors comfortable and just enough hype to fuel a serious rally. It’s cheap. It’s growing fast. And it’s pulling in interest from traders who’ve already seen what a penny-priced asset can become when the timing is right. To understand why ADA-era investors are flocking in, begin by visiting the LILPEPE presale page and joining the Official Telegram group. The energy within suggests a great deal about where this community believes the project is headed.

For more information about Little Pepe (LILPEPE) visit the links below:

Website: https://littlepepe.com

Whitepaper: https://littlepepe.com/whitepaper.pdf

Telegram: https://t.me/littlepepetoken

 Twitter/X: https://x.com/littlepepetoken

 $777k Giveaway: https://littlepepe.com/777k-giveaway/

Meme Coins Are Pumping Again—But Ozak AI’s Forecast Outshines Them All

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Meme coins are roaring back to life as the crypto market heats up, with social sentiment, liquidity inflow, and rapid community momentum pushing numerous tokens into new bullish stages. Traders are once again rotating into high-volatility belongings, which have historically brought fast and dramatic gains throughout early bull-cycle stages.

Yet despite the surge across popular meme coins, analysts say one project continues to dominate long-term discussions: Ozak AI. Its early-stage valuation, real AI-driven utility, and rapidly expanding ecosystem make it a standout project with far greater upside than purely sentiment-driven meme assets. While meme coins can spark quick rallies, Ozak AI offers deep technological value, setting the stage for a far more explosive and sustainable breakout.

Meme Coin Momentum Returns

Meme coins are benefiting from increased retail activity, rising social media engagement, and renewed speculation cycles—all of which historically precede broader bull market expansions. Tokens across the meme sector are showing sharp daily swings, with liquidity deepening as traders chase early-stage pumps. This movement mirrors previous market cycles where meme coins led the initial hype phase, bringing millions of new participants into crypto.

Yet despite the excitement, meme coins remain heavily sentiment-driven. Their long-term sustainability depends on community interest, coordinated marketing bursts, and viral momentum. While these conditions can produce massive short-term gains, they also introduce instability during market pullbacks, making meme coins powerful but unpredictable players in any bull cycle.

Ozak AI Stands Out With Real Utility and Long-Term Vision

Ozak AI, on the other hand, is attracting attention not because of hype alone but because of its deep utility, AI-driven architecture, and future-focused roadmap. Built to serve as an advanced intelligence layer for the crypto ecosystem, Ozak AI incorporates:

  • AI prediction agents capable of processing market data in real time
  • Cross-chain intelligence systems that analyze blockchain activity across multiple networks
  • Ultra-fast market signal processing, enhanced by partnerships with HIVE’s 30 ms data engine
  • Distributed AI computation, supported by Perceptron Network’s 700,000+ active nodes
  • Autonomous AI-agent and voice-driven tools, enabled through SINT integration

This combination of high-speed analysis, autonomous intelligence, and real-time predictive capability positions Ozak AI as a transformative force within the AI-crypto landscape. Unlike meme tokens that rely primarily on sentiment, Ozak AI creates lasting value through technological depth and functional utility.

Presale Momentum Confirms Ozak AI’s Explosive Trajectory

The Ozak AI presale has become one of the most talked-about events of the year, with over $4.7 million raised and more than 1 million tokens sold so far. This explosive demand shows strong conviction from early investors who recognize the project’s long-term potential. Because Ozak AI remains in its early phase, the upside window is significantly wider than for large-cap or mature meme tokens.

Historically, early-stage projects with high utility and narrative alignment tend to outperform during bull cycles—especially those aligned with dominant global themes. With AI adoption accelerating across every industry, Ozak AI sits at the center of both the AI and crypto megatrends. Its low market cap and open price-discovery runway give it one of the highest ROI profiles of the upcoming cycle.

Meme coins may be pumping once again, bringing excitement and fast profits back to the market, but their growth is largely cyclical and sentiment-driven. Ozak AI, by contrast, offers real-world AI functionality, cutting-edge infrastructure, and early-stage explosive potential, making it a far more compelling opportunity for long-term investors. As the market prepares for the next major bull run, Ozak AI continues to outshine meme coins—not only in narrative strength but also in actual utility and growth potential. For traders seeking the next breakout star, Ozak AI stands firmly at the top of the list.

About Ozak AI

Ozak AI is a blockchain-based crypto project that provides a technology platform that specializes in predictive AI and advanced data analytics for financial markets. Through machine learning algorithms and decentralized network technologies, Ozak AI enables real-time, accurate, and actionable insights to help crypto enthusiasts and businesses make the correct decisions.

 

For more, visit:

Website: https://ozak.ai/

Telegram: https://t.me/OzakAGI

Twitter: https://x.com/ozakagi

 

Micron to Invest $9.6bn in A Chip Plant in Hiroshima, Signals Japan’s Return to the Global Semiconductor Frontline

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Micron Technology is preparing its largest commitment yet to Japan’s semiconductor revival, with plans to invest 1.5 trillion yen — roughly $9.6 billion — in a new high-bandwidth memory manufacturing plant in Hiroshima.

The figure, reported by the Nikkei and attributed to people familiar with the matter, marks one of the most aggressive expansions by a U.S. chipmaker in Japan in more than two decades.

Construction at Micron’s existing Hiroshima complex is scheduled to begin in May next year. The first shipments of advanced HBM chips are targeted for around 2028, positioning the facility to come online just as demand for AI-class memory is projected to deepen.

Japan’s Ministry of Economy, Trade, and Industry is prepared to shoulder a sizable part of the burden. According to the Nikkei, the ministry will provide up to 500 billion yen in subsidies — a sign of how urgently Tokyo wants to restore its semiconductor footprint. Once a global leader in memory and logic, Japan has spent the past decade trying to claw back relevance after years of underinvestment and the rise of South Korea and Taiwan.

Tokyo’s approach has shifted dramatically. Instead of hoping domestic players can recover alone, the government has thrown open its doors to foreign heavyweights such as Micron and TSMC. That effort has also included funding a new advanced-logic project built on IBM technology, part of a push to rebuild every layer of the chip ecosystem — from research and manufacturing to packaging and supply-chain logistics.

The timing aligns with a surge in demand for high-bandwidth memory. HBM has become the essential component in artificial intelligence systems, enabling the rapid throughput required to train and deploy large models. As cloud giants race to expand data-center clusters built around GPUs, the global HBM market has tightened sharply. SK Hynix dominates the space, but Micron’s Hiroshima expansion is designed to close that gap and diversify its operations away from Taiwan.

Analysts say diversification is no longer a strategic luxury. It is a geopolitical necessity. Tensions around the Taiwan Strait have pushed chipmakers to spread their manufacturing footprints across multiple regions to guard against disruption. Japan’s subsidies, political stability, and long-standing base of semiconductor talent have made it an increasingly attractive alternative.

The Hiroshima project is also part of Japan’s broader attempt to anchor itself in the world’s AI supply chain. By drawing companies like Micron and TSMC into long-term projects, Tokyo aims to lock in domestic jobs, secure access to advanced components, and make Japan indispensable again to global chip production.

Micron’s new plant, expected to deliver HBM for AI data-centers, high-performance computing systems, and next-generation enterprise hardware, will enter service during a period when memory demand is forecast to rise consistently. AI training complexes are expanding rapidly, and HBM shortages have become a recurring bottleneck. Investors tracking Micron’s strategy see the Hiroshima buildout as a long-term play to capture the next wave of AI-driven hardware spending.

Japan, for its part, is racing to ensure that this investment cycle does not slip away as previous ones did. It lost ground in the 2000s when domestic chip companies struggled to scale against Korean rivals. The current era — dominated by AI, data-center growth, and strategic industrial policy — offers Japan a rare second chance. Micron’s 1.5-trillion-yen commitment signals that global chipmakers are taking that opportunity seriously.

By 2028, when Micron intends to start shipping HBM from Hiroshima, the global memory landscape will be more competitive, more politically charged, and more dependent on AI infrastructure. The company’s push into Japan, backed by one of the world’s most aggressive subsidy programs, puts it in a position to compete with SK Hynix and Samsung.

OpenAI Reportedly Preparing to Offer Ads as Company Grapples with Heavy Spending and Low Profit

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OpenAI is reportedly preparing to trial ads inside ChatGPT’s Android beta, as profit has significantly failed to catch up with the exploding user base and ballooning infrastructure bill.

An analysis by HSBC Global Investment Research concludes that OpenAI still isn’t likely to be profitable by 2030 — and warns the firm will need at least US$207 billion in additional funding to sustain its growth plans.

HSBC’s projection includes a scenario in which, by 2030, ChatGPT and related services reach roughly 44 percent of the world’s adult population (up from about 10 percent in 2025).

Yet even under this optimistic adoption scenario — and after assuming robust subscription and enterprise-AI growth — the infrastructure and compute burden threatens to overwhelm revenues. HSBC models show roughly US$792 billion in cloud and AI infrastructure costs from late 2025 to 2030, with a data-center rental bill of about US$620 billion alone.

Longer term, commitments balloon further: compute obligations could reach US$1.4 trillion by 2033 under current deals.

That math explains why OpenAI reportedly is already seeking more funding, even while it experiments with ads. The ad test may be part of a broader strategy to diversify revenue streams beyond paid plans and enterprise deals — precisely because the compute and infrastructure costs are so staggering, they can swallow growth if not offset by fresh capital or new revenue models.

Why The Infrastructure Costs Are So Massive

The pressure stems largely from recent multiyear cloud-compute and data-center rental deals that lock in enormous capacity commitments. Among them are a roughly US$250 billion agreement with Microsoft and a US$38 billion deal with Amazon Web Services (AWS), combining to secure around 36 gigawatts of AI compute power by the end of the decade.

To put that into perspective: HSBC’s analysts estimate that even with such deals, OpenAI’s “free cash flow + other liquidity” through 2030 would remain negative, leaving the US$207 billion gap.

Because AI models — and their inference demand from millions of users — scale rapidly, compute costs grow rapidly. The larger and more widely used the models become, the more infrastructure you need: data centers, specialized hardware, cooling, electricity, bandwidth, and maintenance. For a platform forecasting widespread global adoption, this translates into high recurrent costs, not one-off capital expenditures.

This high fixed-cost structure helps explain the company’s pursuit of non-subscription revenue streams like advertising: they may be essential to closing the widening deficit.

Ads Inside ChatGPT: A Potential Survival Mechanism — with Trade-offs

That brings us back to the ad test in ChatGPT’s Android beta. For OpenAI, ads offer a way to monetize the conversation and search traffic generated by its hundreds of millions — soon billions — of users. If properly implemented, ads could tap into digital ad budgets just like search engines or social platforms do, but with far greater targeting precision, thanks to the conversational and contextual signals available.

At a time when infrastructure spending threatens to outstrip even aggressive revenue forecasts, the ad strategy may reflect more than a convenience — it could be part of a lifeline to keep the platform afloat without perpetual infusions of external capital.

But that approach carries risks: delivering ads inside conversational AI could erode user trust, blur the lines between unbiased information and commercial content, and raise privacy concerns — especially when the system already handles personal data. For a tool many use for work, research, education, coding, or writing, introducing commercial placements changes the value proposition substantially.

What This Means for the Broader AI and Tech Industry

OpenAI’s situation encapsulates a fundamental tension now emerging across the frontier-AI industry: scaling to global reach demands massive compute infrastructure, but monetizing that scale — via subscriptions, enterprise sales, ads — remains uncertain. HSBC’s analysis suggests that even with high growth, the cash flows are unlikely to catch up to the cost curve without continuous capital infusions or breakthroughs in monetization.

For investors, cloud providers, chipmakers, and other infrastructure partners, that raises critical questions: Is the current AI megacycle sustainable, or is the industry building what some analysts now call a “money pit with a website on top”?

It also means regulators, privacy advocates, and users need to watch closely. As AI platforms like ChatGPT play an increasingly central role in how people access information, learn, work, and create, their business models will shape not only the tools themselves but the incentives behind them — from what kind of content gets surfaced to how user data is used and monetized.